Krystal Integrated Services IPO opens for subscription today. Should you bid?
Krystal Integrated Services will open for subscription today. The issue consists of fresh equity sale worth Rs 175 crore and an offer for sale (OFS) of Rs 125 crore.
Ahead of the IPO opening, the company has raised Rs 90.04 crore from 10 anchor investors including BofA Securities, Aegis Investment Fund, PCC, Saint Capital Fund among others.
The funds raised through the IPO will be utilized for repayment of debt, working capital requirements, capital expenditure as well as for general corporate purposes.
Krystal Integrated Services IPO review
Analysts are neutral on the IPO despite the company's comprehensive service offerings and focused business model, which is well-positioned to capitalize on favorable industry trends.
The company boasts a diverse customer base, a wide geographic presence, and a track record of strong financial performance. However, there are some key challenges which include reliance on a limited number of clients, particularly government contracts secured through bidding processes.
«The facility management industry is highly competitive, and operational risks are inherent to the business. Valuation-wise, the IPO appears fully priced at a P/E of 40x. Considering these factors and the current market sentiment, we maintain a neutral rating on the IPO,» said Swastika Investmart.
Krystal Integrated Services IPO. 10 things to know before subscribing to the issue
Krystal Integrated Services IPO price band
The company has fixed a price band of Rs 680-715 per share for its maiden public offer.
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